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Dear Parishioners of St. Joseph parish,
I would like to write to you all about some recent developments regarding our diocese. On October 1st, 2020, Bishop Barres announced that the diocese has chosen to file for chapter 11 bankruptcy protection. Our diocese has been experiencing the challenge of legal fees and potential settlements or judgments from numerous cases that have been filed under the Child Victim's Act (CVA). As of the time of this announcement, it is reported that over 200 cases have been filed; there are still approximately 11 more months for victims of any age to file a case in New York State. While you may have read that our diocesan legal counsel had filed a case to challenge the constitutionality of the CVA, they were unsuccessful in their attempt to receive a stay in litigation while they pursued that case.
I am sure that for many of the faithful on Long Island, this news gives rise to a host of questions. I would like to provide you with two resources where you can find certain answers. The primary resource for information is a new website dedicated to providing updates during the restructuring process. This website is: www.drvcreorganization.com.
A second resource is a website that will host all of the legal documents filed during the restructuring process. That website is: https://dm.epiq11.com/case/drvc/info.
Please take the time to review the information presented on these two sites, particularly Bishop Barres' letter to the faithful, and the FAQ section.
In addition, information and inquiries about the case can be requested by phone:
Toll Free U.S. #: (888) 490-0633
Non U.S. #: (503) 520-4459
In the rest of the letter, I would like to address some general questions regarding the legal and financial implications of this filing. Then, I would like to offer some pastoral comments.
What are the implications of a chapter 11 filing for the diocese?
The purpose of a chapter 11 filing is to preserve the mission of an organization that is faced with debts that do, or may, exceed their assets. It does not mean that the diocese has gone bankrupt, but rather that they are seeking legal protection from the possibility of bankruptcy. The chapter 11 filing invokes a stay that stops all legal actions against the diocese. A judge will then be appointed to oversee proceedings in which plaintiffs' lawyers, along with other creditors, the diocese, and the company that insures the diocese, work towards determining a total amount to be awarded as a settlement. Insurance would be responsible for paying part of that settlement; the diocese would be responsible for paying the rest. I know that many may wonder about the sources of funding that will be used to make these payments. To answer that, I refer you to the FAQ section on the drvcreorganization.com website.
What is the potential impact upon our parish, other parishes, and diocesan entities (e.g. schools)?
While the news of the chapter 11 filing may come as a surprise, pastors have been counseled for over a year on how to navigate through such an event. These conferences took place in recognition of the possibility of a chapter 11 filing. In once such conference, pastors were joined by different staff members or parishioners. In our case, I attended the meeting with one of our parish trustees. In response to the information presented, our parish retained Cullen & Dykman LLP to represent us in the event of a chapter 11 filing by the diocese. We have retained them since November 13th, 2019. By law, the diocesan attorneys are not allowed to represent the parishes during a chapter 11 proceeding. This is due to New York State laws which establish each parish and entity as a separate religious corporation. And so, while the diocese has made a chapter 11 filing, the parishes and schools have not. That being said, the diocese has indicated that they will seek to have a stay order issued for all cases against these entities. We believe that such a stay order will be granted. As of the time that I write this article, our parish has 7 cases filed against us. It is the job of our attorneys to minimize the exposure of the parish while a settlement is being determined. In response to potential questions regarding parish exposure, the diocese has offered a special set of questions and answers that pertain to parishes. They state the following:
Finally, please allow me to make some pastoral remarks regarding this announcement. To those who find themselves worried over the future of our diocese and our parish: please note that chapter 11 protection is specifically designed to help organizations reemerge, not close down. On a parish level, this chapter 11 filing is not the biggest of our issues, it's not even the biggest of our financial issues! The work of evangelization, which directly contributes to the salvation of souls, continues to be the most pressing mission that we take part in as a parish community. It is in response to those concerns that our focus should be drawn. As for parish finances, I will discuss those in a future address, as I indicated in my last update video and letter, dated September 17th.
Let us also remember that the announcement today stems from alleged evil actions, the majority dating to the 60s and 70s. These acts involved real people. And while it may be comforting to believe that a large percentage of accusations are false, we cannot be satisfied with such a dishonest treatment of people. We would be abandoning the gospel of Christ if we believe that we can ignore the pain of our brother and sister Catholics who continue to cry out because of the evil afflicted against them. We would be heartless to believe that money alone, rather than genuine acts of compassion and accompaniment, can console victims. We would be worse than fools to believe that a legal process and institutional policies should be the fruit of this trial rather than the conversion of souls and the rooting out of evil (important as good policies are - and they are extremely important!). These things being said, we also agonize over the pain of those who have been falsely accused and any unjust prejudice against Catholics or priests due to the corrupt deeds of a few. This is all to say that even when these proceedings are finished, our work is very far from being over.
I would like to call your attention to the letter that I wrote for the bulletin published February 17th, 2019, which you can still find on our parish website (stjosephsbabylon.org). There, I invited survivors of child sexual abuse to tell their story and, through their witness, help us, as a parish, diocesan, and universal community find healing through embracing the truth of what has happened. I am very proud of the many people who did step forward to share their stories with me. I do not know how many more are still out there, but I want to repeat to you all something I said back in that letter: "If you are a victim, please know that your witness is needed. Your courage helps us see where sickness has invaded our members, where we must act resolutely, and where we must beg God for healing. Please know that my door is always open if you would like to report or share your story; I cannot change what has happened, but I would like to be part of the journey forward, difficult as it may be."
At that time, I indicated that we should explore ways where we, as a parish community, can stand in solidarity with those who have suffered, asking the Lord for His mercy, and petitioning Him for His grace which causes the conversion of hearts and can truly root out sin and evil. We will begin having a holy hour on Monday evenings, starting this Monday. I propose that one such Monday in the future be dedicated to praying for this intention. We absolutely need the guidance of the Good Shepherd, who leads us to verdant pastures, and guides us with His own Holy Spirit, to direct us all, from the newly baptized infant, to the Pope. We entrust ourselves, our family, our diocese, our Church to the one God, the "watcher of men" (Job 7:20), for whom "one day is as a thousand years, and a thousands years as one day" (2 Peter 3:8) so that His providence, His will, watch over and guide us. We beseech the angels and saints to be by our side and ever-onward in the paths of faith, hope, and charity. Let us worship our God, and serve one another with purity of heart. May His divine grace be there to always accompany you and those you love.
In Christ,
fr. Jason